For shoppers who have watched an online total rise at the last step of a purchase, that familiar frustration is the subject of a class action lawsuit.
The case targets Route App, which is accused of placing a "shipping protection" charge into online carts even though consumers did not explicitly agree to it.
Here's what to know
As reported by Top Class Actions, plaintiffs Anthony Mertson and Michael Schirano filed the suit against Route App in New York federal court on June 3, claiming the company broke state and federal consumer laws. They allege that checkout software on e-commerce sites adds a "shipping protection" or "package protection" fee as shoppers move through checkout.
According to the complaint, the key issue is that these charges appeared without shoppers first clearly opting in to them.
The filing refers to the added costs as "junk fees." Consumers often use that term for charges they see as hidden, confusing, or difficult to avoid, and fees that surface late in checkout can make people feel pushed to finish the purchase instead of starting over.
As with any lawsuit, these are allegations, and the court has not determined whether Route App violated the law.
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More background
Unexpected checkout costs may force households already stretching tight budgets to spend more than planned or abandon a purchase after investing time in the process.
The Route lawsuit also reflects concerns many people have about how businesses use certain tools in online shopping. Apps and add-on protections may be presented as helpful features, but critics argue they cross a line when they are not clearly optional.
If a fee is truly optional, consumers should be able to understand what it is, why it is being added, and how to decline it without confusion.
What can be done?
Screenshots of the checkout process may be useful if a shopper later disputes a charge with a retailer or payment provider.
Lawsuits like this can also pressure companies to make online checkout more transparent. It's possible that public scrutiny may encourage businesses to simplify disclosures and avoid automatically adding extra costs.
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